United States Trading Platform LedgerX Introduces Binary Wager on Bitcoin Halving

The US trading and clearing platform, LedgerX, has announced a new type of single Bitcoin derivative contract (BTC), according to a blog published on February 5.

A new product called LedgerX Division Contract (LXHC) represents a binary option - the option in which it is again or a fixed amount or nothing - and takes into account the next Bitcoin split estimate.

Bitcoin sharing is an event that occurs once in four years, after which the number of new bitcoins created and earned by minors will be halved. The last time Bitcoin was halved was 2016, when the prize went from 25 to 12.5 BTC.


LedgerX explains that the new derivative agreement will "enable fixed gain if the next blocked block (# 630,000) occurs before a specified date and time. If the block is discovered afterward, the contract expires at zero." Based on favorite network conditions, the date of the next block half is estimated at May 25, 2020.

While binary options are traditionally known as gambling because the "yes / no" bet, the publication emphasizes the unique Bitcoin character as "there is a fundamental economic risk that is binary," LedgerX states:

"... Imagine that you are an oil producer like Exxon Mobile and you know that one day in 2020, the number of barrels you have taken will be reduced by half, forever." But you do not know which date to be. This would have a significant impact on investment planning and business planning. Bitcoin miners face this exact risk every four years or so for the total prize they earn. "

In January, LedgerX launched its first Bitcoin Price Volatility Index, called LedgerX Volatility Index (LXVX). "The LXVX integrates the level of fear and uncertainty in the Bitcoin market, and can, therefore, be considered a" Bitcoin Intimidation Index, "just as VIX is commonly referred to as the stock market index, explained the company.

The LedgerX BTC savings product licensed by the US Commodities Future Trading Commission began in May 2018. This project is expected to simplify trading with BTC options in a basic point-and-click format so that "less sophisticated" traders potentially have a high cost of ownership.

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